Debt Recovery

We have published two collection letters for medical and dental practices. However, this is a fairly generic format and can be referenced for small business debt collections as well.

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Give your debtor one last chance?
Send a final letter, give 15 more days to settle before involving a collection agency. Mention your intention clearly in this letter.

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A final letter + invoice from “Dr. William Joe” to his patient “John Doe”
( Assuming that 45 days have passed since the payment was due.)

From,
Dr William Joe,
123 Main Street,
Katy, TX, 44920

Phone: (777) 123-4567
Fax # (777) 123-4568

Email: accounts@drwilliamjoekatytexas.com
Website: www.drwilliamjoekatytexas.com

Date: 01/01/2019
JOHN DOE
872 CONVAY STREET,
LAS VEGAS, NV, 89408

Dear John Doe,

We are disappointed that we have not received payment from you regarding your past due balance. Your account is in serious jeopardy of being reassigned to an outside collection agency. In order to prevent your account from further action or to prevent negative marks to your credit history, please make payment within 15 days by check, cash, western union or credit card.

If your payment is already on its way, we thank you and ask that you please disregard this notice. If you are unable to make payment in full due to financial difficulties, we encourage you to discuss a reasonable payment plan so you can satisfy your obligation and keep your account in good standing. Please do not hesitate to call patient accounts at (777) 123-4567. We are also attaching an invoice of $2500 for the treatment you had received.

Reference Number: 12ABC678
Principal Amount: $2,300
Interest Amount: $100
Total Debt: $2,400

Sincerely,

Patient Accounts
Dr. WILLIAM JOE

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Still not getting paid (after 15 days)?
Transfer this account to a collection agency without delay.
A sample Debt Collection Agency’s letter is published below.

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Sample Debt Collection Letter from “XYZ COLLECTION AGENCY ” to the patient “JOHN DOE” on behalf of “Dr. WILLIAM JOE”

Dear JOHN DOE,

ABC CLIENT has asked us to contact you regarding your account. Their records show that you owe $2,500.00.

Please send a payment of $2,500 for ABC CLIENT using the bottom portion of this letter or contact them at (777) 123-4567 to make payment arrangements that are satisfactory with our office.

Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt, or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days from receiving this notice that you dispute the validity of this debt, or any portion thereof, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you request this office in writing within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor.

Thanks for your cooperation.

THIS COMMUNICATION IS FROM A DEBT COLLECTOR. THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE.

Sincerely, XYZ COLLECTION AGENCY, INC.
1111 KIRSTEN STREET, ROHNERT PARK, CA, 94928

Our business hours are Monday through Friday, 8:00 am through 9:00 pm Pacific Standard Time and on Saturday from 8:00 am through 2:00 pm Pacific Standard Time.

NOTICE: PLEASE SEE REVERSE SIDE FOR IMPORTANT INFORMATION
Calls inbound and outbound may be recorded and monitored

Date of Service: 01/01/2019
Reference Number: 12ABC678
Patient’s Name: MARY DOE
Name of Provider: Dr. WILLIAM JOE
Principal Amount: $2,300
Interest Amount: $200
Total Debt: $2,500

RETURN SERVICE REQUESTED
To: JOHN DOE 872 CONVAY STREET, LAS VEGAS, NV, 89408	SEND PAYMENTS TO: Dr. WILLIAM JOE, 123 Main Street, Katy, TX, 44920

Collection Letters and Collection Calls from a Debt Collection Agency puts a humongous pressure on your debtor, versus when you send a letter in your name. 

Contact us for your debt collection needs.

( Note: Above sample letters are for reference purposes only. Please speak to an expert legal attorney to alter or add appropriate verbiage. )

Credit card defaults require immediate resolution. This is because credit card debt is unsecured, meaning the borrowers do not have to provide collateral for the money they borrow. About 1.8% of credit card accounts in America remain at least 30 days past due. A good economy’s credit card default rate is around 2% and often shoots above 4% during slowdowns or recessions.

Accounts that defaulted on their credit card bills for over 60-90 days are usually forwarded to a professional debt collection agency since credit card issuers do not have enough time and in-house expertise to keep following up with defaulters.

It is important for your collection agency to have a thorough understanding of the laws governing credit card debt recovery and to tailor their collection strategy to each individual’s unique circumstances. For example, people with higher credit scores, temporary financial setback, good payment history, steady income, low overall debt and those who engage in communication are more likely to pay with persistent efforts, compared to other defaulters.

Recover your unpaid credit card bills: Contact Us A collection agency with nationwide coverage | High recovery rates

Many debtors cannot pay the full amount they owe, leading to negotiations for a reduced settlement. This process can be complex and time-consuming. Recovering credit card debt often takes a significant amount of time and resources.

Handling credit card defaults is essential for both consumers and credit card issuers. Defaulting on a credit card can have severe consequences for consumers, including damage to credit scores, increased interest rates, and legal actions. Here are steps for both parties on how to handle credit card defaults:

For Consumers:

1. Communication with the Issuer: If you are facing financial difficulties and believe you might default on your credit card payments, it is crucial to communicate with your credit card issuer as soon as possible. They may be able to work with you to develop a payment plan.
2. Budgeting and Prioritizing Payments: Create a budget and prioritize your spending. Focus on essential expenses and allocate funds to pay down your credit card debt. It may be necessary to cut back on non-essential spending.
3. Seeking Assistance: Consider speaking with a credit counseling agency. They can provide guidance and sometimes negotiate with credit card companies on your behalf.
4. Debt Management Plan: A credit counseling agency might suggest a debt management plan, where you deposit monthly money with the counseling organization, which then pays your creditors. This is often accompanied by concessions from creditors to lower interest rates or waive fees.
5. Legal Advice: If your debt situation is severe and the credit card issuer is taking legal action, it might be wise to seek legal counsel.

For Credit Card Issuers:

1. Monitor Accounts: Credit card issuers should closely monitor accounts for signs of distress, such as missed payments or sudden increases in balances.
2. Early Intervention: If an account shows signs of distress, the issuer should proactively contact the customer to discuss their circumstances and options.
3. Flexible Repayment Options: Offering flexible repayment options or temporarily reducing the interest rate can sometimes help a consumer avoid default.
4. Debt Collection and Legal Action: In cases where an account has defaulted and the customer is not responsive to communication attempts, the issuer may need to engage a debt collection agency or take legal action to recover the debt.
5. Charging Off Debts: If all efforts to collect on a defaulted account have been exhausted, credit card issuers might ultimately charge off the debt as a loss. They can also sell the debt to a third-party collection agency.

Both parties should be aware of the laws and regulations that govern credit card debts and defaults in their jurisdiction. It is also essential for consumers to understand their rights under consumer protection laws.

We help utility companies recover unpaid bills through respectful, compliant, and cost-effective collection methods that protect your public image. Our tailored services include early outreach, skip tracing, and legal recovery – ensuring higher recovery rates without customer complaints

Utility companies form an essential part of every household in the United States, providing crucial services like electricity, gas, water, and garbage collection. Typically, these companies are lenient and do not immediately cut off services if a customer misses a payment or two, however, this leads to a significant accumulation of accounts receivable for most utility companies.

Most customers do not take their overdue utility bills seriously unless a collection agency is involved.

Not all collection agencies are created equal. When choosing a collection agency, it is crucial to select one that not only adheres to federal and state laws but also holds the necessary licenses to operate in all 50 states. Equally important is the agency’s performance track record and its commitment to data security. A top-tier collection agency should provide low cost solutions and excel in effectively recovering debts while ensuring the protection of sensitive information, thereby standing out from its competitors in terms of both compliance and operational excellence. 

Serving Utility Companies Nationwide ! Need a collection agency: Contact us

Unlike specialized collection agencies, the in-house staff of utility companies often lacks professional training in swiftly collecting payments from past-due accounts. Many of these agents are not fully informed about the constantly evolving debt collection laws, which can inadvertently lead to unnecessary or frivolous lawsuits. Typically, the accounting staff may send a few reminder letters or make phone calls, but their efforts usually end there. They aren’t equipped to effectively counter the variety of excuses that debtors frequently present, nor do they have access to the advanced tracking and reporting tools available to collection agencies. This gap in expertise and resources can hinder efficient debt recovery for utility companies.

Collection Letters Service

The upfront cost for 5 Collection Letters is about $10 per account.  Debtors pay directly to you, no other fees. Low-cost option.  Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees.  Agency gets paid a portion of the money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls a debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

Transferring overdue accounts to a debt collection agency, particularly those where the electricity or gas bill has been outstanding for over 60 or 90 days, can be highly beneficial for utility companies for several key reasons. One crucial aspect is the need for utility company staff to promptly furnish any documentation requested by their collection agency. This is increasingly important as more debtors nowadays tend to dispute their bills as a tactic to evade payment. Timely and accurate documentation supports the collection agency’s efforts in validating the debts and effectively counteracting these disputes, thereby facilitating a more efficient and successful debt recovery process.

1. Collection Agency letters work:

When individuals receive reminder letters from utility companies, these notices are often not taken seriously, possibly due to the individual experiencing financial difficulties. It’s common for such individuals to prioritize other debts, such as credit card or medical bills, over utility bills.

The situation shifts significantly when a collection agency intervenes. A collection letter from a professional debt collection agency invokes  urgency and responsibility. Collection agencies are adept at crafting and sending strategically composed demand letters with increasing intensity, making it clear to the customer that the account has entered a more serious phase of collections and that further action is imminent. These agencies are skilled in debt recovery, employing various methods to ensure payment if it is at all feasible. For debtors who avoid answering calls from unknown numbers, these letters often serve as the primary mode of communication.

Should these collection letters prove ineffective, the next step often involves escalating to more direct methods like collection calls. The prospect of frequent calls from a debt collector can motivate individuals to settle their bills to avoid continued contact. This approach underscores the effectiveness of collection agencies in managing debts that utility companies may struggle to recover through their standard reminder notices.

2. Cost Savings:

The economics of debt collection for utility companies reveal a significant cost advantage when using external collection agencies. For a typical business, the expense of sending five collection agency letters is approximately $15. However, utility companies, due to the large volume of their past-due accounts, often secure this service at an even lower rate, around $10 for five letters. In contrast, attempting to manage this process in-house proves to be far more costly. When factoring in postage, staffing, office leasing costs, time spent, and other overheads, the expense of sending five letters per account can escalate to between $50 and $80. This substantial difference in cost makes outsourcing to collection agencies a more financially prudent option for utility companies dealing with a high volume of overdue accounts.

3. Skip tracing and Bankruptcy checks:

Collection agencies employ advanced skip tracing techniques on all accounts assigned to them. This process involves updating and verifying the contact information of debtors. Specifically, if a debtor has relocated from the address on record, the agency seeks to find their new location. Additionally, they conduct bankruptcy checks to determine if the debtor is no longer liable for the debt due to bankruptcy protection. This thorough approach ensures that collection efforts are directed efficiently and in compliance with legal constraints, particularly in cases where a debtor’s financial status or location has changed.

4. Compliance! Adherence to laws when performing collections:

The staff of utility companies often fall short in debt collection due to the intricate rules and guidelines set by federal and state governments on how to approach an individual for debt recovery.

The Fair Debt Collection Practices Act (FDCPA) is the principal federal law that regulates debt collection practices. Collection agency staff are extensively trained to adhere strictly to these laws during the collection process. This expertise significantly reduces the risk of legal violations, thereby protecting utility companies from potential lawsuits and the associated settlements that often result from such legal challenges.

Moreover, collection agencies are both licensed and insured, providing an additional layer of security. In the event of legal action initiated by a debtor, this ensures that the agencies are prepared to handle the situation, further safeguarding the utility companies from direct legal repercussions. This level of specialized knowledge and preparedness is typically beyond the scope of in-house utility company staff, making the use of collection agencies a more secure and efficient option for debt recovery.

5. Higher ROI and Performance Guarantee:

Collection agencies are extremely confident about their Debt Collection Letters service. Most offer a guarantee to return at least twice the amount you invest in buying their Letters Service. This is a win-win situation for utility companies. Not only is the collection done at a low cost, but a guarantee also backs the investment.

6. Easy to use:

Most agencies have a 24/7 online portal to submit accounts, view performance reports, or stop service when the debtor makes payment. Many agencies have integrations or utilities with various billing platforms, like Quickbooks and Zoho.

7. Ease of payment:

Collection agencies accept payments in many forms, which a typical Utility company does not offer. They may also negotiate with a customer to pay the amount in installments. Collection agencies have many techniques to recover debt, handle debtor excuses and handle most debt collection challenges.

The timely recovery of these dues is critical for utility companies, as they operate on narrow profit margins. Despite their vast infrastructure, these companies often face a shortage of staff to meet all business needs, with the accounts receivable department being notably understaffed. Even though only a small percentage of bills might remain unpaid, these outstanding amounts can have a substantial impact on the profit margins of utility companies, given their tight financial operations.

When a company provides a product or service, it has a right to expect to be paid on time. However, anyone who has been in business knows that prompt payment is not always the case. Often, accounts get seriously past due, or when payments are made, there may be insufficient funds in the customer’s bank account to cover a check. Invoices not paid within terms can dramatically negatively impact the “cash flow” of a business.

1. Have a Defined Credit Collection Policy

One of the major causes of overdue receivables is that the business has not explained to its customers and staff when accounts are to be paid. If customers are not educated that their accounts are to be paid on time, then chances are they’ll pay late or, sometimes, not at all. Ensure that your company’s payment terms are clearly stated in writing to each customer. Have you defined acceptable payment arrangements?

2. Invoice Promptly and Send Statements Regularly

If you don’t have a systematic invoicing and billing system, get one. The customer often hasn’t paid simply because they haven’t been billed or reminded to pay promptly. This situation usually occurs in smaller or newer businesses, where they may be short-handed on staff needed for timely invoicing and billing. How is “returned mail” handled, if any?

(STEP 1: 1st Party REMINDER service, done in your name, we can help!)

3. Use USPS – “Address Service Requested”

One of the most challenging collection problems is tracking a customer who has “skipped”. All businesses should be aware of a special service that the US Postal Service offers. Any statement or correspondence sent out from a business or professional office should have the words “Address Service Requested” printed or stamped on the envelope, just below your return address in the top left corner. Suppose a statement or invoice is sent to a customer who has moved without informing you of their new address, and the words “Address Service Requested” appear on the envelope. In that case, the Post Office will research this information and return the envelope to you on a yellow sticker that gives the new address or other updated information. If the customer has placed a “forwarding order,” we suggest you check with your local Post Office to see what additional options you may have for follow-up. This will help you keep your address files up to date.

4. Contact Overdue Accounts More Frequently

No law says that you may only contact a customer once a month. The old adage “The squeaky wheel gets the grease” has great merit when collecting past-due accounts. It’s an excellent idea to contact late payers every 10-14 days. Doing so will enable you to diplomatically remind the customer of your payment terms.

Ask them how much they are short of. That statement will put pressure on them to at least put some payment today.

5. Use Your Aging Summary Report, Not Your Feelings

Many well-meaning business owners (or staff members) have let an account age beyond the point of ever being collected because of the “feeling” that the customer would pay eventually. While there are isolated cases of unusual situations, the truth is that if you aren’t being paid, someone else is. Stick to your systematic follow-up plan. You’ll soon identify who intends to pay and who doesn’t. You can then take appropriate actions.

6. Make Sure Your Staff is Well-Trained

Even “experienced” staff members can sometimes become jaded when dealing with past-due customers. This usually happens when debtors have broken promises for payments that have been made previously. Make sure the staff is firm yet courteous when dealing with them. Your entire staff could benefit from customer service training because, in effect, they must “sell” your customers on the idea that you expect to be paid. Make sure that your collection staff is trained to both bring the account to its current status while also maintaining “goodwill” with the client base.

7. Admit any Mistakes on Your Part and correct them ASAP

Sometimes customers don’t pay because they feel you’ve made a mistake. If you have, quickly admit it and correct it. Your customer realizes that mistakes can happen in business. Unfortunately, many customers believe that the owner or president “doesn’t need the money.” Denying an obvious error only fans the fire of resentment that your customer may already feel.

8. Follow all Federal and State Collection Laws

In many states, businesses are governed by the same collection laws that regulate collection agencies. For example, calling customers at an odd hour or disclosing to a third party that the debtor owes you money are just a couple of the numerous collection practices that can cause serious repercussions. If you’re unsure, call your state’s finance department, which governs and monitors collection agencies.

9. Use a Third-Party Sooner (Collections Agency)

If you’ve systematically pursued your past due accounts for 60 to 90 days from the due date (and they still haven’t paid), you’re being delivered a message by your client. You’ve likely requested payment four to six times through phone calls, letters and statements. Statistics show that after 90 days, the in-house collection effort loses up to 80% of its effectiveness. That means that the time and financial resources budgeted for collection efforts should be focused on the 1st 60-90 days when the bulk of your accounts can and should be collected. From that point on, a 3rd party can motivate your client to pay you in ways that you cannot, simply because the demand for payment is coming from someone other than you. Before paying a contingency collection agency, an attorney, or using a small claims court, why not explore using a fixed flat-fee collection service?

STEP 1 ( 1st Party Reminder Service) & STEP 2 (3rd Party Service) for a Fixed Flat-fee of about $15 per account, regardless of the amount owed or where the debtor is located in the U.S.!

STEP 3 is a contingency service.

10. Remember that Nobody Collects Every Account

Even by setting up and adhering to a specific collection plan, there will still be a few accounts that will never be collected. Identifying these accounts early will save you and your company a great deal of time and money. Even though a few may slip by, you’ll find that overall the number of slow-pay and nonpaying accounts will greatly diminish, and that’s a victory in itself!

11. Hunt for positive signs:

If a patient/customer says he cannot pay the remaining amount in full, take it positively. At least he called himself and has the intention to pay. Negotiate what he can pay today and the remaining amount later. The lesser the amount is past due, the easier it will become to resolve it later. Hanging the phone down without a proper payment plan will push that account toward default.

12. Charge Late Fees:

Extending credit to customers is often necessary for Small Businesses, but it has always been a trickier call to impose a late fine or not. Slipping a late fees clause in your credit policy is easier when you initially sign the agreement with a client because, typically, no one expects to pay late when the agreement is signed for the first time. Having a late fee discourages your customer from making late payments. Customers are also likely to clear those bills first where a late fee will be charged. Late fees also covers the cost of that extra effort you make to follow up with them and finally, it adds up to your bottom line. Even if you waive off the late fees as a goodwill gesture once or twice (or always), it will improve your relationship with them since you did a favor to them.

13. Offer multiple payment methods

Provide an online payment portal because people prefer making payments from the convenience of their home rather than walking to your business location. We believe younger people don’t like to mail a check or give credit card details over the phone, fearing misuse. Accept credit card, Paypal, eCheck, FSA or ACH.

14. Provide longer human support hours with shorter wait times:

Let people call you and discuss how and when they can pay. Let them talk to a real person without waiting for long hours and clarify any queries they may have. Offer them flexible payment options and possibly waive off 10% of the balance if they can pay in full.

15. Have a bank reference or trade check done

If you are about to make a large credit sale, have a bank reference or trade check done. For medium-sized deals, perform credit checks before you extend credit to customers; it is a small investment with significant benefits.

16. Form a pool of buyers

If you can create a group of like-minded buyers, you can save 10% with the group-buying tactic. Also, check if suppliers are willing to give a decent discount if you pay them in advance rather than in installments.

17. Utility cost recovery & Cost segregation study

You can reduce your utility bills by up to 10-15% for the same energy used. Some experts work on a contingency basis and legally reduce your utility bill (electric, gas, even phone bill), even get you a refund for the past three years.

Similarly, you can claim faster property depreciation legally from IRS and improve your cash flow by hiring cost segregation professionals who do a “cost segregation study” for your property.

These result in savings of thousands of dollars annually for most small businesses.

18. Use a higher-interest bank account

Put all your extra cash in a high-yield savings account rather than an old-bank one. Extra interest earned will also add up towards your cash flow target.

Improve your reporting process by monitoring your organization’s key performance indicators (KPIs). A perfect way to understand your finances is to generate an outflow/cashflow chart from your accounting software. For an optimum cash flow, one must try to regulate the cash on hand for three to four months of expenses.

19 Use a Line of Credit Wisely

Establish a line of credit before you need it and use it for short-term cash flow boosts. Be cautious not to overextend yourself.

20 Extend Payables

While getting money in faster, also try to extend the time you have to pay your bills. Negotiate better terms with suppliers without compromising relationships.

21 Improve Inventory Management:

If your business holds inventory, make sure you’re turning it over quickly and not carrying excessive stock. Holding too much inventory ties up cash.

Conclusion

Most tips mentioned in this article are already known to every business owner. Just that we forget to implement them. The fact is that every bit counts when it comes to cash flow.

If you need a collection agency to handle your accounts receivable: Contact Us

Automotive repair and body shop garages regularly face issues related to accounts receivable. Whether it is because a customer did not fulfill his obligation to pay or a delay/rejection of the claim by an insurance company. Past-due accounts can quickly erode the profits of an automotive workshop and even interrupt the smooth running of the facility.

If an Automotive workshop on a 20% profit margin, say 5% of their customers do not pay, then effectively 25% of their net profit is gone. Collecting money from existing customers is more important than getting new customers. Sounds unreal, but it’s correct.

Need a collections agency: Contact us

Besides the time required to generate new business, an automotive workshop faces many challenges. These include increased competition, certification requirements, integrated vehicle technologies, a limited number of skilled workers, paperwork, and higher expectations for speedy repairs despite a slower reimbursement process by insurance companies.

If a repair is being paid through an insurance claim, the garage must often navigate a complex process to get paid. This can lead to delays and increased administrative burden.

Relying on in-house staff, which are not adequately trained to collect the debt can be ineffective, time-consuming and costly. Transferring an account to a professional collection agency will reduce the staff burden and even result in higher recovery rates. Debt collectors are experts in collecting debt; after all that is what they do every workday. They ensure that the debt collection rules and regulations specified by the Federal and State governments are followed, minimizing the chances of a counter-lawsuit.

A collection agency will also do advance Skip Tracing, which helps to locate a debtor in case he has shifted from this residence. Services offered by collection agencies are usually diplomatic but can be slightly intensive if required. The two-step collection process offered by collection agencies is perfect for starting the diplomatic process initially and then using debt collectors or filing a legal suit to put more pressure to settle the account. Collection agencies can also report the debt to Credit Bureaus if you request them to do so. They drastically reduce the stress of debt collection for the owner and the staff.

Collection Letters Service

Upfront cost for 5 Collection Letters is about $15 per account. Debtors pay directly to you, no other fees. Low cost option. Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

 

Unpaid bills of customers create a significant financial burden on telecommunication companies. The Telecom sector is highly competitive, and without a proper accounts receivable strategy, past-due accounts can severely impact their cash flow. Too many overdue accounts receivable restrict the ability of a telecom provider to expand their business, install new towers, and provide quality service to existing customers. It can restrict their ability to upgrade systems or to adapt newer technology to stay competitive.

To hire a collection agency: Contact Us

Telecommunication companies often deal with a large number of accounts, each with relatively low balances. The cost of pursuing each individual debt can exceed the actual debt amount, making recovery economically unfeasible in some cases.

The billing department of the telecom companies is always under a lot of pressure because the existing customers are always unhappy about the mandatory charges/taxes levied on the base price of a plan by law. Surcharges and taxes vary with every state and even district. A plan costing $49.99 per month will cost about $10-$15 more after taxes and surcharges. Moreover, if a customer uses services exceeding their monthly plan, it significantly overcharges. Many customers dispute these extra charges and often refuse to pay. Consumer Financial Protection Bureau recently conducted a survey and found that over one-third of telecom customers were behind payments due to billing disagreements or personal financial issues.

A collection agency will relieve your accounting staff from the headaches of collecting money from past-due accounts. A good telecom collection agency can serve national and regional telecom providers. They can communicate in both English and Spanish.

Benefits of hiring a Telecom Debt Collection Agency:

1. Agencies always do an advance skip tracing to locate the debtor and engage with him professionally and diplomatically. They are well-versed in handling common problems in debt collection and debtor excuses.

2. Run checks if the debtor has filed for bankruptcy or if he has deceased. If so, I recommend closing the case without wasting any more resources.

3. Report the debt to a Credit Bureau, if the cell phone operator wants.

4. Collect the debt by following the FDCPA laws prescribed by the federal government and do a preemptive scrub for “litigious” customers, thereby greatly reducing the number of lawsuits that a telecom provider may get dragged into.

5. Involvement of a Collection Agency conveys a powerful message to the customer, and they are more likely to settle, versus when the in-house employees of a telecom provider were trying to collect money under their own company’s name.

Collection Letters Service

The upfront cost for 5 Collection Letters is about $10 per account. Debtors pay directly to you, no other fees. Low cost option. Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

Getting better collection rates from your agency:

1. Transfer the accounts early and automatically to your collection agency. The older an account gets, the harder it gets to settle.

2. During the collection process, customers often ask for the contractual agreement (soft/hard copy), copy of bills, and late fees. Those should be provided quickly because the mobile phone customer has the right to validate the debt.

3. Sign a Settled-In-Full agreement with your collection agency, which authorizes them to settle the case for slightly less money in some cases.

If you need a telecom collections agency to recover money from unpaid bills: Contact us

Check this: Cost of hiring a collection agency